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S74 Small Remanufacturing Shop Design – Level 1
World Expo 2003Las Vegas, NevadaSunday, September 14, 2003
Apr 10, 2023 Expo 2003 2
Timing is everything
• Remanufacturing & Printer Service is a couple decades smarter
New Business / New Product Life Cycles• Development 1986• Growth 1995• Expansion 1999• Maturity Laser ??
• Saturation• Decline
Apr 10, 2023 Expo 2003 3
Opportunity Placement • Development stage, there are no cartridge sales at all. However
manufacturing must support a development area and resources to insure a timely product launch.
• Growth stage, sales are slow and marketing costs are high; often manufacturing resources need to be supplemented by frequent training sessions and manufacturing team building.
• Expansion stage, sales should grow more rapidly, and manufacturing teams are executing their well thought out plans to accommodate growth.
• Maturity stage, sales will plateau as most customers who want the product have quality sources for the product. Manufacturing teams have predicted this plateau and the production schedules will adjust for sales volume and inventory reduction.
• Saturation stage, every customer who wants the cartridge product has several competitive sources for acquisition, and there are few opportunities for increasing sales.
• Decline stage, cartridge sales fall and the product eventually becomes obsolete. Manufacturing teams have transitioned resources to new products and reduced raw materials and finished goods to reduce financial risk.
Apr 10, 2023 Expo 2003 4
Long Range Plan • Data
2003 Pages Printed by Group
Group 449%
Group 59%
Group 325%
Group 213%
Group 61%
Group 13%
Group 1
Group 2
Group 3
Group 4
Group 5
Group 6
Home and Small Office Printing Group 1
Education Group 2
Professional Business Communication Group 3
Business High Volume Group 4
Business Presentation / Marketing Group 5
Publishing / Proofing / Pre-press Group 6
Apr 10, 2023 Expo 2003 5
US Market (CAP Ventures) & PRINTER Placements
TOTAL ANNUAL CARTRIDGE SALES
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
year
SALE
S IN
MIL
LIO
NS
OF
UN
ITS
rmfg
ttl. Mkt.
rmfg 11.1 12.6 13.0 14.2 15.0 16.0 16.9
ttl. Mkt. 35.1 44.0 47.9 52.8 56.4 58.4 60.8
1996 1997 1998 1999 2000 2001 2002
Total Cartridge Market
Remanufactured Cartridge Market
~27%
OEM Portion
RM Portion
Apr 10, 2023 Expo 2003 6
Laser / Ink Jet CartridgeConsumables Market
Consumables / Revenue
$0.00 $2.00 $4.00 $6.00 $8.00
1997
2000
2001
2002
2003
Bill
ions
of U
S D
olla
rs Group 6
Group 5
Group 4
Group 3
Group 2
Group 1
Apr 10, 2023 Expo 2003 7
Value Chain Details
Operations• Production• Equipment
Maintenance • Rework• Facilities• Inventory• H/R
Inbound Logistics
• Receiving / Inspection• Production Scheduling • Inventory Control• Warehouse management (Position control)
Outbound Logistics
• Order Acceptance• Picking • Inventory Adjust• Cycle Count / Inventory Adjust• Ship Confirm
Service and Support
• Technical Training• Production Process Development• Testing• Documentation• Recruit / Hire
Apr 10, 2023 Expo 2003 8
Value Chain Details
Sales and Marketing
• Sales Goals• Product Management • Advertisement• Customer
Identification and priority
• Forecasting
Service and Support
•Training•Sales Process Development•Customer Support• Documentation
Apr 10, 2023 Expo 2003 9
Product Success Metrics
• Image Performance– Halftone reproduction– Line art
• Yield• Solid fill uniformity• Printer maintenance reduced
– Fuser performance– cleanliness
• Standards and industry uniformity• Ultimately it’s Profit $$$$$$$$$$$$$$$$$$$$$
Apr 10, 2023 Expo 2003 10
Objectives• Consistency; To provide your customers with
functional products, insist on consistency from your vendors. The next shipment of a product has to be the same as the last acceptable shipment.
• Reliability; A statistical sampling system enables you to ensure your vendors are reliable, with good product, in a timely manner, conforming to the specifications established during the development phase of product acquisition.
• Accuracy; Incoming inspectors confirm the accuracy of incoming product. Confirming product identification, conformance to specification, packaging and labeling.
Apr 10, 2023 Expo 2003 11
Quality is People
• Every group, department, from the top down …….. execute
• Process management measures results• Results reaffirm the plan• Constant improvement• Lowers Cost
Apr 10, 2023 Expo 2003 12
Quality is people
Process Development
Consistent Product & Service Understand limitations of the product … Printer or
Cartridge Specification and accuracy Corrective action Training …. Training …… and more
Apr 10, 2023 Expo 2003 13
Electronic Printing Technology
• Large history of method standards for the copier industry– Toner testing– Photoconductor performance– Customer satisfaction
• Remanufacturing a consumable – Use Automotive “parts” industry as a model– Customer quality assurance– Purchasing guideline– Core replacement– Faceless and nameless ACCEPTED Quality
Apr 10, 2023 Expo 2003 14
Quality: First and Foremost
• Objectives: • Consistency,
Reliability, Accuracy.• Raw Materials
( Purchases)
• Empties• Incoming Inspection:
Quality Control Methods and Examples
• Allies: Interactive Vendors, Customer feedback,
• Adversaries: Variation, Unexpected Vendor modifications, Inappropriate process deviation
• Teamwork
Apr 10, 2023 Expo 2003 15
Test …and Measurement
• Statistics 101– List ALL areas where data can be gathered
• Accuracy• Usable data
– Taking the data is the first step• Leaders need time to work with the data to make
process changes• Acquisition and presentation
Apr 10, 2023 Expo 2003 16
Product or Service Feasibility
• Develop product model– Printer placement and acceptance– Cartridge mechanics and access– Marketing info– Printer Past history– CPP … Total cost of ownership
• Production Assumptions and Estimates – Develop timeline– Imagineer process and costing
Apr 10, 2023 Expo 2003 17
Process Design & Details
• Cell …………….. To ……………...– From past experience develop cell picture– Solve material flow– Breakdown training issues– Document bill of materials (BoM)– remember the “long range plan” (LRP)
• ……… Managed Production– Correct process– Training– Scale UP
Apr 10, 2023 Expo 2003 18
Prototype Process• Draw pictures … cut out the paper pieces
– Map the process from the Cell stage to Managed production
– Look at the facilities details• Air .. Heat … Power .. Lights … Traffic … Storage
– Pick your people resources … share the ideas
• Set up a dummy cell …. Dry run– Check Raw materials flow– Who’s waiting
– Check your plan
Apr 10, 2023 Expo 2003 19
Corrective Action (plan for it)
• Process defects or procedural changes– Review with all production teams … you may have
some ability to kill a problem before it starts
• Retain Visual samples of defects for training• Preparation inspections prevent drone
mistakes … Awareness of the process is crucial• End of shift positive reinforcement
– Announce data– Show / Chart progress– Training awards … not material … verbal praise in
front of peers
Apr 10, 2023 Expo 2003 20
Team Leaders are “people”
• Groom with future goals in mind• TRAINING is communicating your
plan• Clear concise and ATTAINABLE Goals• POSITIVE Atmosphere• Watch for “diamonds in the rough”
Apr 10, 2023 Expo 2003 21
Raw Materials Management• Empties
– Source … Cleaning … Inspect …. Waste … Cost
• Cleaning & Handling– Storage … Damage Control … Assembly
Staging– Solvents … Inspect .. Waste … Time … Cost
• Assembly– Readiness … Tools … Inspection … Time ..
Cost
• Printer Parts and rebuilds….
Apr 10, 2023 Expo 2003 22
Process Foundry• Build the REAL Cell
– Staff Cell
• Order protocol & forecast• TRAINING• Flexibility
– Document changes and corrective action
• Statistics & Process Measurement– Raw material yields– Flow issues– Assembly rates– Test performance
Apr 10, 2023 Expo 2003 23
Capital Equipment
• Primary Equipment requirements– Time savings– Quality enhancement– Training required– Human component
• Secondary requirements– Maintenance– Obsolescence– Expansion
Apr 10, 2023 Expo 2003 24
Productivity• Facility Layout
– Material flow – Cleanliness
• Documented Procedures for simple tasks– Simplifies training– creates standard
• Training– Cross training, and daily rotation– Team Leaders … Building Quality
• Sound Forecast– Minimize... waste, storage,hassles– Supply Chain Management
Apr 10, 2023 Expo 2003 25
Cell to Managed ProductionTransition• Planned transition …
– Pick the criteria early – Set training goals early
• Quality is a job well thought out and well tooled
• Excellent training and complete task description fosters worker happiness
• Success is about people
Apr 10, 2023 Expo 2003 26
Generic CellEmpties
Empties.. Disassembly & Cleaning & Seal
Test & await packaging
Remove reject material
AssembleInspect & Stage
Planned new material, remove waste
Apr 10, 2023 Expo 2003 27
Keep it Simple Stupid (KISS)
• Visual aids … 75% of learning is facilitated by visual cognition. PICTURES not WORDS
• Constant positive reinforcement is Constant Improvement.
• Cross train similar job functions .. Remember social circles and peer pressure are your allies– Disassembly ---- Assembly– Evacuation ---- Component Prep– Pre Test ---- Final Test
Apr 10, 2023 Expo 2003 28
Assess each work function• Map mini process
– document– training guidelines– Timing
• Mini production for some work function– Skill assessment– Time
• Realistic training goals– Critical for Quality Control– No job is more important
Apr 10, 2023 Expo 2003 29
Safety Requirements
• FROM the TOP Down– ALL quality management tools start from
acceptance at the top … Safety requirements and concerns are PRIMARY
• High visibility area for procedures and Training
• Monthly assessments
Apr 10, 2023 Expo 2003 30
Print Performance Data
5000
5500
6000
6500
7000
7500
8000
9000 9100 9200 9300 9400
Lot #
Pag
e Yie
ld
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Image D
ensi
ty
Yield
SF.ID
20% HT
Tracking
Apr 10, 2023 Expo 2003 31
Drums• Visual Inspection: All OPC Drums are
inspected for surface defects. Visual contaminants or defects lead to further testing and/or rejection. Record and compare “lot number” identification on boxes. Store OPCs in a designated area, mark the area well. Data base lot data.
• Electrical Properties: Electrical data provided by the vendor is compared to past data to confirm specification compliance. If a discrepancy appears or the data is inconsistent then contact the vendor for modification or specification change. Use print tests with your toner combination to determine the acceptability of the shipment.
Apr 10, 2023 Expo 2003 32
Check For:- Consistent Packaging- Product Verification- Pin holes- Fish eyes- Coating Defects and/or contaminates- Unclean Contacts- Stains- Voids
Rubber Gloves - required. Visual InspectionQ.C. Sample--if needed-- Cartridge fit and/or Print test
PCR Incoming Inspection checklist
Apr 10, 2023 Expo 2003 33
Visual Inspection - Use a Sample or Photocopy
Sample Destructive testing: ie: Split Seal
1. Strip backing from seal examine for consistent glue. 2. Press seal on clean, flat surface3. Pull tab on seal.4. Examine for uniform removal of material.5. --if needed-- Cartridge fit and/or UPS test.
RM Material Incoming Inspection method
Apr 10, 2023 Expo 2003 34
Summary• More than 15 individual items may be
purchase for high quality cartridges today.• Less than 20% of remanufacturers have
established quality processes for their products.
• More than 500 remanufacturers will fail in the next year…. Because of quality.
• Less than 29% of the remanufactured cartridges sold last year met an OEM specification
• Lower Cost and higher profits will only be realized by executing a Total QMS system.